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"Entrepreneur" Flash

Issued every 14 days, it includes the current economic indicators and the trend outlook from Credit Suisse Economic Research – sent directly to your smartphone.

September 10, 2018

Forecast for the Next 30 Days:

Demand:

Rising

Inflation:

Rising

Labor market:

Rising

SNB awaits ECB's move

The Swiss economy is performing well, growth is robust, and inflation is clearly within the Swiss National Bank's comfort zone. However, there are a few exchange rate concerns – the CHF is again somewhat on the strong side. During its latest monetary policy assessment in June, the SNB also indicated that it will not raise interest rates until the European Central Bank (ECB) does so. And the ECB in turn stressed again that interest rates would not increase for at least one year. Given the current EUR/CHF exchange rate and the high probability that the CHF will not depreciate that rapidly, we expect that the SNB will not change its position in next week's assessment – the prime rate is set to remain negative in Switzerland for some time yet.

Exchange Rate and Interest Rates Today / in 3 Months:

EUR/CHF: 

1.13/1.14

3m LIBOR:

–1.25 to –0.25 / –1.25 to –0.25

10-year government bonds:

-0.1 / 0.2

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